New Delhi, April 24: The Enforcement Directorate Thursday conducted searches against beleaguered Gensol Engineering Ltd and detained its co-promoter Puneet Singh Jaggi from a Delhi hotel, official sources said. The raids were conducted at company's premises in Delhi, Gurugram and Ahmedabad under the provisions of the Foreign Exchange Management Act (FEMA).

The promoter brothers of the company -- Anmol Singh Jaggi and Puneet Singh Jaggi -- are under the scanner of the federal probe agency following a SEBI report against them for alleged financial misconduct and diversion of funds.

The sources told PTI that Puneet Jaggi was detained by the ED from a Delhi hotel while Anmol Jaggi is stated to be in Dubai. Gensol Share Price Crash: BluSmart Parent Company’s Stocks Fall 90% As SEBI Exposes Mega Fraud.

The ED action is based on the SEBI order which claimed that Gensol Engineering obtained loans from Power Finance Corporation and IRDEA Ltd for procurement of EVs and EPC contracts. However, according to the sources, the company instead of utilizing these funds for the intended purposes had diverted the funds for purchasing the assets in personal name of promoters or their relatives or in various shell entities floated by the group.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)